1995B27-PAYMENT OF THE BONDS
ORDII1A11CE Wl. 95-B-27
FINAL
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE ISSUANCE OF "CITY
OF SCHERTZ, TEXAS GENERAL OBLIGATION REFUNDING
BONDS, SERIES 1995", LEVYING AN ANNUAL AD VALOREM
TAX, WITHIN THE LIMITATIONS PRESCRIBED BY LAW, FOR
THE PAYMENT OF THE BONDS; PRESCRIBING THE FORM,
TERMS, CONDITIONS, AND RESOLVING OTHER MATTERS
INCIDENT AND RELATED TO THE ISSUANCE, SALE, AND
DELIVERY OF THE BONDS, INCLUDING THE APPROVAL
AND DISTRIBUTION OF AN OFFICIAL STATEMENT
PERTAINING THERETO; AUTHORIZING THE EXECUTION
OF A PAYING AGENT/REGISTRAR AGREEMENT, A BOND
PURCHASE AGREEMENT, AND AN ESCROW AND TRUST
AGREEMENT; AND DECLARING AN EMERGENCY
WHEREAS, the City Council (the City Council) of the City of Schertz, Texas (the
City) has heretofore issued, sold, and delivered, and there are currently outstanding
obligations in the aggregate principal amount of $1,525,000, being the obligations set
forth on Schedule I hereto which is incorporated by reference for all purposes to this
ordinance (the Refunded Obligations); and
WHEREAS, pursuant to the provisions of Texas Revised Civil Statutes
Annotated Article 717k, as amended (the Act), the City Council is authorized to issue
refunding bonds and deposit the proceeds of sale under an escrow agreement to provide
for the payment of the Refunded Obligations, and such deposit, when made in
accordance with the Act, shall constitute the making of firm banking and financial
arrangements for the discharge and final payment of the Refunded Obligations; and
WHEREAS, the Act requires that the deposit of the proceeds from the sale of the
refunding bonds be deposited directly with any place of payment for the Refunded
Obligations; and
WHEREAS, The Bank of New York, New York, New York (as the successor to
The Frost National Bank, San Antonio, Texas, as successor to First City, Texas--Austin,
N.A., Austin, Texas) currently serves as a paying agent for certain of the Refunded
Obligations and will serve as the Paying Agent/Registrar (hereinafter defined) and
Escrow Agent (hereinafter defined) for the refunding bonds; and
WHEREAS, the City Council also hereby finds and determines that the Refunded
Obligations are scheduled to mature or are subject to being redeemed, not more than
twenty (20) years from the date of the refunding bonds herein authorized and such
refunding will result in a net present value saving of approximately $140,778.00 to the
City and will reduce the current tax rate for the citizens of the City; and
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WHEREAS, the City Council hereby finds and determines that the issuance of
the refunding bonds is in the best interests of the citizens of the City, now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS THAT:
SECTION 1: Authorization - Desimation - Princioal Amount - Puroose -
Issue Date. General obligation refunding bonds of the City shall be and are hereby
authorized to be issued in the aggregate principal amount of One Million Seven
Hundred Thousand and No/100 Dollars ($1,700,000), to be designated and bear the title
of "CITY OF SCHERTZ, TEXAS GENERAL OBLIGATION REFUNDING BONDS,
SERIES 1995" (the Bonds), for the purpose of providing funds for the discharge and
final payment of certain obligations of the City (identified in the preamble hereof and
referred to as the Refunded Obligations) and to pay the costs and expenses of issuance,
all in conformity with the laws of the State of Texas, particularly Texas Revised Civil
Statutes Annotated Article 717k, as amended, the City's Home Rule Charter, and an
ordinance adopted by the City Council on September 19, 1995.
SECTION 2: Fullv Remstered Oblilrations - Authorized Denominations -
Stated Maturities - Interest Rates. The Bonds shall be issued as fully registered
obligations, without coupons, shall be dated August 1, 1995 (the Issue Date) and shall
be in denominations of $5,000 or any integral multiple (within a Stated Maturity)
thereof, shall be lettered "R- " and numbered consecutively from One (1) upward and
principal shall become due and payable on February 1 in each of the years and in
amounts (the Stated Maturities) and bear interest at the rates per annum in accordance
with the following schedule:
Years of Principal Interest
Stated Maturitv Amounts ($) Rates (%)
1996 $120,000 3.75
1997 l30,000 4.05
1998 230,000 4,15
1999 210,000 4.30
2000 270,000 4.45
2001 335,000 4.60
2002 85,000 4.75
2003 110,000 4.85
2004 105,000 4.90
2005 105,000 5.00
The Bonds shall bear interest on the unpaid principal amounts from the Issue
Date, or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, to the earlier of redemption or Stated Maturity, at the rates per
annum shown in the above schedule (calculated on the basis of a 360-day year of twelve
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30-day months), Interest on the Bonds shall be payable on February 1 and August 1
in each year, commencing February 1, 1996 (the Interest Payment Date).
SECTION 3:
Pavrnent of Bonds - Pavinl! Al!ent/Remstrar.
The principal of, premium, if any, and the interest on the Bonds, due and
payable by reason of Stated Maturity, redemption, or otherwise, shall be payable in any
coin or currency of the United States of America which at the time of payment is legal
tender for the payment of public and private debts, and such payment of principal of,
premium, if any, and interest on the Bonds shall be without exchange or collection
charges to the Holder (as hereinafter defined) of the Bonds.
The selection and appointment of The Bank of New York, New York, New York,
to serve as the initial Paying Agent/Registrar for the Bonds is hereby approved and
confirmed, and the City agrees and covenants to cause to be kept and maintained at the
principal corporate trust office of the Paying Agent/Registrar books and records (the
Security Register) for the registration, payment, and transfer of the Bonds, all as
provided herein, in accordance with the terms and provisions of a Paying
Agent/Registrar Agreement, attached, in substantially final form, as Exhibit A hereto,
and such reasonable rules and regulations as the Paying AgentlRegistrar and the City
may prescribe. The Paying Agent/Registrar shall also maintain a copy of the Security
Register at its offices, or its agent's offices, located in Houston, Texas. The City
covenants to maintain and provide a Paying AgentlRegistrar at all times while the
Bonds are Outstanding, and any successor Paying Agent/Registrar shall be (i) a
national or state banking institution or (ii) an association or a corporation organized
and doing business under the laws of the United States of America or of any state,
authorized under such laws to exercise trust powers. Such Paying Agent/Registrar shall
be subject to supervision or examination by federal or state authority and authorized
by law to serve as a Paying AgentlRegistrar.
The City reserves the right to appoint a successor Paying AgentlRegistrar upon
providing the previous Paying AgentlRegistrar with a certified copy of a resolution or
ordinance terminating such agency. Additionally, the City agrees to promptly cause a
written notice of this substitution to be sent to each Holder of the Bonds by United
States mail, first-class postage prepaid, which notice shall also give the address of the
new Paying AgentlRegistrar.
Both principal of, premium, if any, and interest on the Bonds, due and payable
by reason of Stated Maturity, redemption, or otherwise, shall be payable only to the
registered owner of the Bonds appearing on the Security Register (the Holder or
Holders) maintained on behalf of the City by the Paying Agent/Registrar as hereinafter
provided (i) on the Record Date (hereinafter defined) for purposes of payment of
interest on the Bonds, (ii) on the date of surrender of the Bonds for purposes of
receiving payment of principal thereof and premium, if any, upon redemption of the
Bonds or at the Bonds' Stated Maturity, and (iii) on any date for any other purpose,
The City and the Paying AgentlRegistrar, and any agent of either, shall treat the
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Holder as the owner of a Bond for purposes of receiving payment and all other
purposes whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent
of either, shall be affected by notice to the contrary,
Principal of and premium, if any, on the Bonds shall be payable only upon
presentation and surrender of the Bonds to the Paying Agent/Registrar at its principal
corporate trust office. Interest on the Bonds shall be paid to the Holder whose name
appears in the Security Register at the close of business on the fifteenth day of the
month next preceding an Interest Payment Date for the Bonds (the Record Date) and
shall be paid (i) by check sent by United States mail, first-class postage prepaid, by the
Paying Agent/Registrar, to the address of the Holder appearing in the Security Register
or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested in
writing by the Holder at the Holder's risk and expense,
If the date for the payment of the principal of, premium, if any, or interest on
the Bonds shall be a Saturday, a Sunday, a legal holiday, or a day on which banking
institutions in the city where the Paying Agent/Registrar is located are authorized by
law or executive order to close, then the date for such payment shall be the next
succeeding day which is not such a day. The payment on such date shall have the same
force and effect as if made on the original date any such payment on the Bonds was
due.
In the event of a non-payment of interest on a scheduled payment date, and for
thirty (30) days thereafter, a new record date for such interest payment (a Special
Record Date) will be established by the Paying Agent/Registrar, if and when funds for
the payment of such interest have been received from the City. Notice of the Special
Record Date and of the scheduled payment date of the past due interest (the Special
Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be
sent at least five (5) business days prior to the Special Record Date by United States
mail, first-class postage prepaid, to the address of each Holder of a Bond appearing on
the Security Register at the close of business on the last business day next preceding
the date of mailing of such notice.
SECTION 4:
Redemption.
A. Optional Redemption. The Bonds having Stated Maturities on and after
February 1, 2004 shall be subject to redemption prior to Stated Maturity, at the option
of the City, on February 1, 2003, or on any date thereafter, in whole or in part, in
principal amounts of $5,000 or any integral multiple thereof (and if within a Stated
Maturity selected at random and by lot by the Paying Agent/Registrar) at the
redemption price of par plus accrued interest to the redemption date.
B. Exercise of Redemption Option. At least forty-five (45) days prior to a
date set for the optional redemption of the Bonds (unless a shorter notification period
shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying
Agent/Registrar of its decision to exercise the right to redeem Bonds, the principal
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amount of each Stated Maturity to be redeemed, and the date set for the redemption
thereof. The decision of the City to exercise the right to redeem Bonds shall be entered
in the minutes of the governing body of the City.
C. Selection of Bonds for Redemption, If less than all Outstanding Bonds of
the same Stated Maturity are to be redeemed on a redemption date, the Paying
AgentlRegistrar shall select at random and by lot the Bonds to be redeemed, provided
that if less than the entire principal amount of a Bond is to be redeemed, the Paying
AgentlRegistrar shall treat such Bond then subject to redemption as representing the
number of Bonds Outstanding which is obtained by dividing the principal amount of
such Bond by $5,000.
D. Notice of Redemotion, Not less than thirty (30) days prior to an optional
or mandatory redemption date for the Bonds, the Paying AgentlRegistrar shall cause
a notice of redemption to be sent by United States mail, first-class postage prepaid, in
the name of the City and at the City's expense, by the Paying AgentlRegistrar to each
Holder of a Bond to be redeemed in whole or in part at the address of the Holder
appearing on the Security Register at the time such notice of redemption is mailed, and
any notice of redemption so mailed shall be conclusively presumed to have been duly
given irrespective of whether received by the Holder.
All notices of redemption shall (i) specify the date of redemption for the Bonds,
(ii) identify the Bonds to be redeemed and, in the case of a portion of the principal
amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the
redemption price, (iv) state that the Bonds, or the portion of the principal amount
thereof to be redeemed, shall become due and payable on the redemption date specified,
and the interest thereon, or on the portion of the principal amount thereof to be
redeemed, shall cease to accrue from and after the redemption date, and (v) specify that
payment of the redemption price for the Bonds, or the principal amount thereof to be
redeemed, shall be made at the principal corporate trust office of the Paying
AgentlRegistrar only upon presentation and surrender thereof by the Holder. This
notice may also be published once in a financial publication, journal, or reporter of
general circulation among securities dealers in the City of New York, New York
(including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the
State of Texas (including, but not limited to, The Texas Bond Reporter). Additionally,
this notice may also be sent by the City to any registered securities depository and to
any national information service that disseminates redemption notices.
If a Bond is subject by its terms to redemption and has been called for
redemption and notice of redemption thereof has been duly given as hereinabove
provided, such Bond (or the principal amount thereof to be redeemed) so called for
redemption shall become due and payable, and if money sufficient for the payment of
such Bonds (or of the principal amount thereof to be redeemed) at the then applicable
redemption price is held for the purpose of such payment by the Paying
AgentlRegistrar, then on the redemption date designated in such notice, interest on the
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Bond (or the principal amount thereof to be redeemed) called for redemption shall cease
to accrue and such Bonds shall not be deemed to be Outstanding.
E. Transfer/Exchane:e of Bonds, Neither the City nor the Paying
AgentlRegistrar shall be required (1) to transfer or exchange any Bonds during a period
beginning forty-five (45) days prior to the redemption date or (2) to transfer or
exchange any Bonds selected for redemption provided; however, such limitation shall
not be applicable to an exchange by the Holder of the unredeemed balance of a Bond
which is subject to partial redemption.
SECTION 5: Execution - Ree:istration. The Bonds shall be executed on
behalf of the City by its Mayor under the seal of the City reproduced or impressed
thereon and attested by its City Secretary. The signature of any of said officers on the
Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures
of individuals who were, at the time of the Issue Date, the proper officers of the City
shall bind the City, notwithstanding that such individuals or either of them shall cease
to hold such offices prior to the delivery of the Bonds to the Purchasers, all as
authorized and provided in the Bond Procedures Act of 1981, Texas Revised Civil
Statutes Annotated Article 717k-6, as amended.
No Bond shall be entitled to any right or benefit under this Ordinance, or be
valid or obligatory for any purpose, unless there appears on such Bond either a
certificate of registration substantially in the form provided in Section 8C, executed by
the Comptroller of Public Accounts of the State of Texas or his duly authorized agent
by manual signature, or a certificate of registration substantially in the form provided
in Section 8D, executed by the Paying AgentlRegistrar by manual signature, and either
such certificate upon any Bond shall be conclusive evidence, and the only evidence, that
such Bond has been duly certified or registered and delivered.
SECTION 6: Ree:istration - Transfer - Exchane:e of Bonds - Predecessor
Bonds. The Paying AgentlRegistrar shall obtain, record, and maintain in the Security
Register the name and address of every owner of the Bonds, or, if appropriate, the
nominee thereof. Any Bond may, in accordance with its terms and the terms hereof,
be transferred or exchanged for Bonds of other authorized denominations upon the
Security Register by the Holder, in person or by his duly authorized agent, upon
surrender of such Bond to the Paying AgentlRegistrar for cancellation, accompanied by
a written instrument of transfer or request for exchange duly executed by the Holder
or by his duly authorized agent, in form satisfactory to the Paying AgentlRegistrar.
Upon surrender for transfer of any Bond at the principal corporate trust office
of the Paying AgentlRegistrar, the City shall execute and the Paying AgentlRegistrar
shall register and deliver, in the name of the designated transferee or transferees, one
or more new Bonds of authorized denomination and having the same Stated Maturity
and of a like interest rate and aggregate principal amount as the Bond or Bonds
surrendered for transfer.
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At the option of the Holder, Bonds may be exchanged for other Bonds of
authorized denominations and having the same Stated Maturity, bearing the same rate
of interest and of like aggregate principal amount as the Bonds surrendered for
exchange upon surrender of the Bonds to be exchanged at the principal corporate trust
office of the Paying AgentlRegistrar. Whenever any Bonds are so surrendered for
exchange, the City shall execute, and the Paying AgentlRegistrar shall register and
deliver, the Bonds to the Holder requesting the exchange.
All Bonds issued upon any transfer or exchange of Bonds shall be delivered at
the principal corporate trust office of the Paying AgentlRegistrar, or be sent by
registered mail to the Holder at his request, risk, and expense, and upon the delivery
thereof, the same shall be the valid and binding obligations of the City, evidencing the
same obligation to pay, and entitled to the same benefits under this Ordinance, as the
Bonds surrendered upon such transfer or exchange.
All transfers or exchanges of Bonds pursuant to this Section shall be made
without expense or service charge to the Holder, except as otherwise herein provided,
and except that the Paying AgentlRegistrar shall require payment by the Holder
requesting such transfer or exchange of any tax or other governmental charges required
to be paid with respect to such transfer or exchange.
Bonds canceled by reason of an exchange or transfer pursuant to the provisions
hereof are hereby defined to be Predecessor Bonds, evidencing all or a portion, as the
case may be, of the same debt evidenced by the new Bond or Bonds registered and
delivered in the exchange or transfer therefor. Additionally, the term Predecessor
Bonds shall include any Bond registered and delivered pursuant to Section 17 in lieu
of a mutilated, lost, destroyed, or stolen Bond which shall be deemed to evidence the
same obligation as the mutilated, lost, destroyed, or stolen Bond.
SECTION 7: Initial Bonds. The Bonds herein authorized shall be initially
issued as a single fully registered Bond in the aggregate principal amount of $1,700,000
with principal installments to become due and payable as provided in Section 2 hereof
and numbered T-l (the Initial Bonds), and the Initial Bonds shall be registered in the
name of the Purchasers or the designee thereof. The Initial Bonds shall be the Bonds
submitted to the Office of the Attorney General of the State of Texas for approval,
certified and registered by the Office of the Comptroller of Public Accounts of the State
of Texas and delivered to the Purchasers. Any time after the delivery of the Initial
Bonds, the Paying AgentlRegistrar, pursuant to written instructions from the
Purchasers, or the designee thereof, shall cancel the Initial Bonds delivered hereunder
and exchange therefor definitive Bonds of like kind and of authorized denominations,
Stated Maturities, principal amounts and bearing applicable interest rates for transfer
and delivery to the Holders named at the addresses identified therefor; all pursuant to
and in accordance with such written instructions from the Purchasers, or the designee
thereof, and such other information and documentation as the Paying AgentlRegistrar
may reasonably require.
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SECTION 8:
FORMS,
A. Forms Generallv. The Bonds, the Registration Certificate of the
Comptroller of Public Accounts of the State of Texas, the Certificate of Registration,
and the form of Assignment to be printed on each of the Bonds shall be substantially
in the forms set forth in this Section with such appropriate insertions, omissions,
substitutions, and other variations as are permitted or required by this Ordinance and
may have such letters, numbers, or other marks of identification (including insurance
legends in the event the Bonds, or any Stated Maturities thereof, are insured and
identifying numbers and letters of the Committee on Uniform Securities Identification
Procedures of the American Bankers Association) and such legends and endorsements
(including any reproduction of an opinion of counsel) thereon as may, consistent
herewith, be established by the City or determined by the officers executing the Bonds
as evidenced by their execution thereof. Any portion of the text of any Bond may be
set forth on the reverse thereof, with an appropriate reference thereto on the face of
the Bond,
The definitive Bonds shall be printed, lithographed, or engraved, produced by
any combination of these methods, or produced in any other similar manner, all as
determined by the officers executing the Bonds as evidenced by their execution thereof,
but the Initial Bond(s) submitted to the Attorney General of Texas may be typewritten
or photocopied or otherwise reproduced.
[The remainder of this page intentionally left blank.]
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B. Form of Definitive Bond.
REGISTERED
NO.....,......,
REGISTERED
PRINCIPAL AMOUNT
$ ................
United States of America
State of Texas
Counties of Bexar, Comal, and Guadalupe
CITY OF SCHERTZ, TEXAS
GENERAL OBLIGATION REFUNDING BOND,
SERIES 1995
Interest Rate:
Issue Date:
August 1, 1995
Stated Maturity:
CUSIP NO:
REGISTERED OWNER:
PRINCIPAL AMOUNT:
........................................... .
. . . . . . . , , . . . . . . . . . . . . . . . . . , . . . . . . ., DOLLARS
The City of Schertz, Texas (the City), a body corporate and a municipal
corporation in the Counties of Bexar, Comal, and Guadalupe, State of Texas, for value
received, acknowledges itself indebted to and hereby promises to pay to the order of the
Registered Owner specified above, or the registered assigns thereof, on the Stated
Maturity date specified above, the Principal Amount specified above and to pay interest
on the unpaid Principal Amount hereof (or so much thereof as shall not have been paid
upon prior redemption) from the Issue Date specified above, or from the most recent
interest payment date to which interest has been paid or duly provided for until such
Principal Amount has become due and payment thereof has been made or duly provided
for, at the per annum rate of interest specified above computed on the basis of a
360-day year of twelve 30-day months; such interest being payable on February 1 and
August 1 of each year commencing February 1, 1996.
Principal of and redemption premium, if any, on this Bond shall be payable to
the Registered Owner hereof (the Holder), upon presentation and surrender, at the
principal corporate trust office of the Paying AgentlRegistrar executing the registration
certificate appearing hereon or a successor thereof. Interest shall be payable to the
Holder of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance
hereinafter referenced) whose name appears on the Security Register maintained by the
Paying AgentlRegistrar at the close of business on the Record Date, which is the
fifteenth day of the month next preceding each interest payment date. All payments
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of principal of, redemption premium, if any, and interest on this Bond shall be in any
coin or currency of the United States of America which at the time of payment is legal
tender for the payment of public and private debts. Interest shall be paid by the Paying
AgentlRegistrar by check sent on the appropriate date of payment by United States
mail, first-class postage prepaid, to the Holder hereof at the address appearing in the
Security Register or by such other method, acceptable to the Paying AgentlRegistrar,
requested by the Holder hereof at the Holder's risk and expense.
This Bond is one of the series specified in its title issued in the aggregate
principal amount of $1,700,000 (the Bonds) pursuant to an ordinance adopted by the
governing body of the City (the Ordinance), for the purpose of providing funds for the
discharge and final payment of certain currently outstanding obligations of the City and
to pay costs and expenses of issuance, under and in strict conformity with the laws of
the State of Texas, including Texas Revised Civil Statutes Annotated Article 71 7k, as
amended, and the City's Home Rule Charter.
As specified in the Ordinance, the Bonds stated to mature on and after
February 1, 2004 may be redeemed prior to their Stated Maturities, at the option of the
City, on February 1, 2003, or on any date thereafter, in whole or in part in principal
amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity
selected at random and by lot by the Paying AgentlRegistrar) at the redemption price
of par plus accrued interest to the redemption date.
At least thirty (30) days prior to the date of redemption, the Paying
AgentlRegistrar shall cause written notice to be given by United States mail, first-class
postage prepaid, to Holders of the Bonds to be redeemed, all in accordance with and
subject to the terms and provisions relating thereto contained in the Ordinance. If this
Bond is in a denomination in excess of $5,000, portions of the principal sum hereof in
installments of $5,000 or any integral multiple thereof may be redeemed, and, if less
than all of the principal sum hereof is to be redeemed, there shall be issued, without
charge therefor, to the Holder hereof, upon the surrender of this Bond to the Paying
Agent/ Registrar at its principal corporate trust office, a new Bond or Bonds of like
Stated Maturity and interest rate in any authorized denominations provided in the
Ordinance for the then unredeemed balance of the principal sum hereof.
If this Bond (or any portion of the principal sum hereoO shall have been duly
called for redemption and notice of such redemption duly given, then upon such
redemption date this Bond (or the portion of the principal sum hereof to be redeemed)
shall become due and payable, and, if money for the payment of the redemption price
and the interest accrued on the principal amount to be redeemed to the date of
redemption is held for the purpose of such payment by the Paying AgentlRegistrar,
interest shall cease to accrue and be payable hereon from and after the redemption date
on the principal amount hereof to be redeemed. If this Bond is called for redemption,
in whole or in part, the City or the Paying AgentlRegistrar shall not be required to
issue, transfer, or exchange this Bond within forty-five (45) days of the date fixed for
redemption; provided, however, such limitation of transfer shall not be applicable to an
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exchange by the Holder of the unredeemed balance hereof in the event of its
redemption in part.
The Bonds of this series are payable from the proceeds of an annual ad valorem
tax levied upon all taxable property within the City within the limitations prescribed
by law.
Reference is hereby made to the Ordinance, a copy of which is on file in the
principal corporate trust office of the Paying AgentlRegistrar, and to all of the
provisions of which the Holder by his acceptance hereof hereby assents, for definitions
of terms; the description of and the nature and extent of the tax levied for the payment
of the Bonds; the terms and conditions relating to the transfer or exchange of the
Bonds; the conditions upon which the Ordinance may be amended or supplemented
with or without the consent of the Holders; the rights, duties, and obligations of the
City and the Paying AgentlRegistrar; the terms and provisions upon which this Bond
may be redeemed or discharged at or prior to the Stated Maturity thereof, and deemed
to be no longer Outstanding thereunder; and for the other terms and provisions
specified in the Ordinance. Capitalized terms used herein have the same meanings
assigned in the Ordinance.
This Bond, subject to certain limitations contained in the Ordinance, may be
transferred on the Security Register upon presentation and surrender at the principal
corporate trust office of the Paying AgentlRegistrar, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Paying AgentlRegistrar
duly executed by the Holder hereof, or his duly authorized agent, and thereupon one
or more new fully registered Bonds of the same Stated Maturity, of authorized
denominations, bearing the same rate of interest, and of the same aggregate principal
amount will be issued to the designated transferee or transferees.
The City and the Paying AgentlRegistrar, and any agent of either, shall treat the
Holder hereof whose name appears on the Security Register (i) on the Record Date as
the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date
of surrender of this Bond as the owner hereof for purposes of receiving payment of
principal hereof at its Stated Maturity, or its redemption, in whole or in part, and
(iii) on any date as the owner hereof for all other purposes, and neither the City nor
the Paying AgentlRegistrar, or any such agent of either, shall be affected by notice to
the contrary. In the event of a non-payment of interest on a scheduled payment date,
and for thirty (30) days thereafter, a new record date for such interest payment (a
Special Record Date) will be established by the Paying AgentlRegistrar, if and when
funds for the payment of such interest have been received from the City. Notice of the
Special Record Date and of the scheduled payment date of the past due interest (the
Special Payment Date - which shall be fifteen (15) days after the Special Record Date)
shall be sent at least five (5) business days prior to the Special Record Date by United
States mail, first-class postage prepaid, to the address of each Holder appearing on the
Security Register at the close of business on the fifteenth business day next preceding
the date of mailing of such notice.
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It is hereby certified, covenanted, and represented that all acts, conditions, and
things required to be performed, exist, and be done precedent to the issuance of this
Bond in order to render the same a legal, valid, and binding obligation of the City have
been performed, exist, and have been done, in regular and due time, form, and manner,
as required by law, and that issuance of the Bonds does not exceed any constitutional
or statutory limitation; and that due provision has been made for the payment of the
principal of, premium if any, and interest on the Bonds by the levy of a tax as
aforestated. In case any provision in this Bond or any application thereof shall be
deemed invalid, illegal, or unenforceable, the validity, legality, and enforceability of the
remaining provisions and applications shall not in any way be affected or impaired
thereby. The terms and provisions of this Bond and the Ordinance shall be construed
in accordance with and shall be governed by the laws of the State of Texas.
IN WITNESS WHEREOF, the City has caused this Bond to be duly executed
under its official seal.
By
ATTEST:
Y:)i,lX'~ tZj~t.2-e--"
City Secretary
(CITY SEAL)
[The remainder of this page intentionally left blank]
0169795.02
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C. *Form of Relristration Certificate of Comntroller of Public Accounts to
Ann ear on Initial Bonds Onlv.
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER
OF PUBLIC ACCOUNTS
THE STATE OF TEXAS
~
~
~
~
REGISTER NO. ...........,
I HEREBY CERTIFY that this Bond has been examined, certified as to validity
and approved by the Attorney General of the State of Texas, and duly registered by the
Comptroller of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this ..,.....,.,..,........,.....,..,............,...
Comptroller of Public Accounts
of the State of Texas
(SEAL)
* Note to Printer: Not to appear on printed Bonds
D. Form of Certificate of Pavinlr AlrentlRelristrar to Annear on Definitive
Bonds Only.
This Bond has been duly issued under the provisions of the within-mentioned
Ordinance; the Bond or Bonds of the above-entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and
registered by the Comptroller of Public Accounts, as shown by the records of the Paying
AgentlRegistrar.
THE BANK OF NEW YORK,
New York, New York
Registered this date:
By
Authorized Officer
0169795.02
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E. Form of Assimment.
ASSIG NMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers
unto (Print or typewrite name, address, and zip code of transferee):
................................................................ .
................................................................ .
................................................................ .
(Social Security or other identifying number: .........,........,....,......)
the within Bond and all rights thereunder, and hereby irrevocably constitutes and
appoints ,........"......."............,............",.........
attorney to transfer the within Bond on the books kept for registration thereof, with
full power of substitution in the premises.
DATED: ,............",'...
......................... .
NOTICE:The signature on this
assignment must correspond
with the name of the registered
owner as it appears
on the face of the within
Bond in every particular,
Signature guaranteed:
F. The Initial Bonds shall be in the respective forms set forth in paralITaph B
of this Section. except that the form of a sine:le fullv relristered Initial
Bond shall be modified as follows:
(i) immediately under the name of the Bond(s) the headings "Interest
Rate _" and "Stated Maturity _" shall both be completed
"as shown below";
(ii) the first two paragraphs shall read as follows:
Registered Owner:
............................................................................................
Principal Amount:
............................................................................................
City of Schertz, Texas, a body corporate and municipal corporation in the
Counties of Bexar, Comal, and Guadalupe, State of Texas, for value received,
acknowledges itself indebted to and hereby promises to pay to the order of the
Registered Owner named above, or the registered assigns thereof, the Principal Amount
specified above on the first day of February in each of the years and in principal
0169795.02
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amounts and bearing interest at per annum rates in accordance with the following
schedule:
YEARS OF
STATED MATURITY
PRINCIPAL
AMOUNTS ($)
INTEREST
RATES (%)
(Information to be inserted from
schedule in Section 2 hereoD.
(or so much thereof as shall not have been paid upon prior redemption) and to pay
interest on the unpaid Principal Amount hereof from the Issue Date specified above,
or from the most recent interest payment date to which interest has been paid or duly
provided for until the Principal Amount has become due and payment thereof has been
made or duly provided for, at the per annum rates of interest specified above computed
on the basis of a 360-day year of twelve 30-day months; such interest being payable on
February 1 and August 1 of each year, commencing February 1, 1996,
Principal of this Bond shall be payable to the Registered Owner hereof (the
Holder), upon its presentation and surrender, at the principal corporate trust office of
The Bank of New York, New York, New York (the Paying Agent/Registrar), Interest
shall be payable to the Holder of this Bond whose name appears on the Security
Register maintained by the Paying AgentlRegistrar at the close of business on the
Record Date, which is the fifteenth day of the month next preceding each interest
payment date. All payments of principal of and interest on this Bond shall be in any
coin or currency of the United States of America which at the time of payment is legal
tender for the payment of public and private debts. Interest shall be paid by the Paying
AgentlRegistrar by check sent on or prior to the appropriate date of payment by United
States mail, first-class postage prepaid, to the Holder hereof at the address appearing
in the Security Register or by such other method, acceptable to the Paying
AgentlRegistrar, requested by, and at the risk and expense of, the Holder hereof.
G. Insurance Lellend. If bond insurance is obtained by the City or the
Purchasers for the Bonds, the Definitive Bonds and the Initial Bonds shall bear an
appropriate legend as provided by the insurer.
SECTION 9: Definitions. For all purposes of this Ordinance (as defined
below), except as otherwise expressly provided or unless the context otherwise requires:
(i) the terms defined in this Section have the meanings assigned to them in this
Section, and certain terms used in Section 21 of this Ordinance have the meanings
assigned to them in such Section, and all such terms include the plural as well as the
singular; (ii) all references in this Ordinance to designated "Sections" and other
subdivisions are to the designated Sections and other subdivisions of this Ordinance as
originally adopted; and (iii) the words "herein", "hereof', and "hereunder" and other
0169795.02
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words of similar import refer to this Ordinance as a whole and not to any particular
Section or other subdivision.
(a) The term Bond Fund shall mean the special
Fund created and established by the provisions of Section 10
of this Ordinance.
(b) The term Bonds shall mean the $1,700,000
"CITY OF SCHERTZ, TEXAS GENERAL OBLIGATION
REFUNDING BONDS, SERIES 1995" authorized by this
Ordinance.
(c) The term Closing Date shall mean the date of
physical delivery of the Initial Bonds in exchange for the
payment in full by the Purchasers,
(d) The term City shall mean City of Schertz,
located in the Counties of Bexar, Comal, and Guadalupe,
Texas and, where appropriate, the City Council of the City,
(e) The term Debt Service Requirements shall
mean, as of any particular date of computation, with respect
to any obligations and with respect to any period, the
aggregate of the amounts to be paid or set aside by the City
as of such date or in such period for the payment of the
principal of, premium, if any, and interest (to the extent not
capitalized) on such obligations; assuming, in the case of
obligations without a fIxed numerical rate, that such
obligations bear interest at the maximum rate permitted by
the terms thereof and further assuming in the case of
obligations required to be redeemed or prepaid as to
principal prior to Stated Maturity, the principal amounts
thereof will be redeemed prior to Stated Maturity in
accordance with the mandatory redemption provisions
applicable thereto.
(D The term Depository shall mean an official
depository bank of the City.
(g) The term Government Securities, as used
herein, shall mean direct obligations of, including obligations
the principal of and interest on which are unconditionally
guaranteed by, the United States of America, which are
non-callable prior to the respective Stated Maturities of the
Bonds and may be United States Treasury Obligations such
0169795.02
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0169795.02
as the State and Local Government Series and may be in
book-entry form,
(h) The term Holder or Holders shall mean the
registered owner, whose name appears in the Security
Register, for any Bond.
(i) The term Interest Payment Date shall mean the
date semiannual interest is payable on the Bonds, being
February 1 and August 1 of each year, commencing
February 1, 1996, while any of the Bonds remain
Outstanding.
G) The term Ordinance shall mean this ordinance
adopted by the City Council of the City on
September 19, 1995.
(k) The term Outstanding when used in this
Ordinance with respect to Bonds shall mean, as of the date
of determination, all Bonds issued and delivered under this
Ordinance, except:
(i) those Bonds canceled by the
Paying AgentlRegistrar or delivered to the
Paying AgentlRegistrar for cancellation;
(ii) those Bonds for which payment
has been duly provided by the City in
accordance with the provisions of Section 23 of
this Ordinance; and
(iii) those Bonds that have been
mutilated, destroyed, lost, or stolen and
replacement Bonds have been registered and
delivered in lieu thereof as provided in
Section 17 of this Ordinance.
(l)
purchasers
Ordinance,
The term Purchasers shall mean the initial
of the Bonds named in Section 18 of this
(m) The term Stated Maturity shall mean the
annual principal payments of the Bonds payable on
February 1 of each year, as set forth in Section 2 of this
Ordinance.
-17-
SECTION 10: Bond Fund: Investments, For the purpose of paying the
interest on and to provide a sinking fund for the payment, redemption, and retirement
of the Bonds, there shall be and is hereby created a special Fund to be designated
"GENERAL OBLIGATION REFUNDING BONDS, SERIES 1995, INTEREST AND
SINKING FUND" (the Bond Fund), which Fund shall be kept and maintained at the
Depository, and money deposited in such Fund shall be used for no other purpose and
shall be maintained as provided in Section 21. Authorized officials of the City are
hereby authorized and directed to make withdrawals from the Bond Fund sufficient to
pay the principal of, premium, if any, and interest on the Bonds as the same become
due and payable and shall cause to be transferred to the Paying AgentlRegistrar from
money on deposit in the Bond Fund an amount sufficient to pay the amount of
principal and/or interest falling due on the Bonds, such transfer of funds to the Paying
AgentlRegistrar to be made in such manner as will cause immediately available funds
to be deposited with the Paying AgentlRegistrar on or before the business day next
preceding each interest and principal payment date for the Bonds.
Pending the transfer of funds to the Paying AgentlRegistrar, money in any Fund
established by this Ordinance, at the option of the City, may be placed in time deposits
or certificates of deposit as permitted by the provisions of the Public Funds Investment
Act, as amended, Chapter 2256, as amended, Texas Government Code, secured (to the
extent not insured by the Federal Deposit Insurance Corporation) by obligations of the
type hereinafter described, or be invested, as authorized by any law, including
investments held in book-entry form, in securities including, but not limited to, direct
obligations of the United States of America, obligations guaranteed or insured by the
United States of America, which, in the opinion of the Attorney General of the United
States, are backed by its full faith and credit or represent its general obligations, or
invested in indirect obligations of the United States of America, including, but not
limited to, evidences of indebtedness issued, insured or guaranteed by such
governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks,
Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage
Association, Farmers Home Administration, Federal Home Loan Mortgage Association,
Small Business Administration, or Federal Housing Association; provided that all such
deposits and investments shall be made in such a manner that the money required to
be expended from such Fund will be available at the proper time or times. All interest
and income derived from deposits and investments in such Fund shall be credited to,
and any losses debited to, such Fund. All such investments shall be sold promptly
when necessary to prevent any default in connection with the Bonds.
SECTION 11: Tax Levv. To provide for the payment of the Debt Service
Requirements on the Bonds being (i) the interest on the Bonds and (ii) a sinking fund
for their redemption at Stated Maturity or a sinking fund of 2% (whichever amount
shall be the greater), there shall be and there is hereby levied for the current year and
each succeeding year thereafter while the Bonds or any interest thereon shall remain
Outstanding, a sufficient tax on each one hundred dollars' valuation of taxable property
in the City, adequate to pay such Debt Service Requirements, full allowance being made
for delinquencies and costs of collection; said tax shall be assessed and collected each
0169790.02
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..
year and applied to the payment of the Debt Service Requirements, and the same shall
not be diverted to any other purpose. The taxes so levied and collected shall be paid
into the Bond Fund and are thereafter pledged to the payment of the Bonds. The City
Council hereby declares its purpose and intent to provide and levy a tax legally and
fully sufficient to pay such Debt Service Requirements, it having been determined that
the existing and available taxing authority of the City for such purpose is adequate to
permit a legally sufficient tax in consideration of all other outstanding indebtedness.
SECTION 12: Deposits to Bond Fund: Excess Bond Proceeds. The City
hereby covenants and agrees to cause to be deposited in the Bond Fund prior to a
principal and interest payment date for the Bonds, from the annual levy of an ad
valorem tax or from other lawfully available funds, amounts sufficient to fully pay and
discharge promptly each installment of interest and principal of the Bonds as the same
accrues or matures or comes due by reason of Stated Maturity,
Accrued interest and premium, if any, received from the Purchasers of the Bonds
along with any taxes collected pertaining to the Refunded Obligations shall be deposited
to the Bond Fund. In addition, any surplus proceeds from the sale of the Bonds,
including investment income thereon, not expended for authorized purposes shall be
deposited in the Bond Fund, and such amounts so deposited shall reduce the sums
otherwise required to be deposited in said Fund from ad valorem taxes,
SECTION 13: Security of Funds. All money on deposit in the Funds for
which this Ordinance makes provision (except any portion thereof as may be at any
time properly invested as provided herein) shall be secured in the manner and to the
fullest extent required by the laws of Texas for the security of public funds, and money
on deposit in such Funds shall be used only for the purposes permitted by this
Ordinance.
SECTION 14: Remedies in Event of Default. In addition to all the rights
and remedies provided by the laws of the State of Texas, the City covenants and agrees
particularly that in the event the City (a) defaults in the payments to be made to the
Bond Fund or (b) defaults in the observance or performance of any other of the
covenants, conditions, or obligations set forth in this Ordinance, the Holders of any of
the Bonds shall be entitled to seek a writ of mandamus issued by a court of proper
jurisdiction compelling and requiring the governing body of the City and other officers
of the City to observe and perform any covenant, condition, or obligation prescribed in
this Ordinance.
No delay or omission to exercise any right or power accruing upon any default
shall impair any such right or power or shall be construed to be a waiver of any such
default or acquiescence therein, and every such right and power may be exercised from
time to time and as often as may be deemed expedient. The specific remedies herein
provided shall be cumulative of all other existing remedies and the specification of such
remedies shall not be deemed to be exclusive.
0169795.02
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SECTION 15: Notices to Holders: Waiver, Wherever this Ordinance
provides for notice to Holders of any event, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and sent by United States
mail, first-class postage prepaid, to the address of each Holder as it appears in the
Security Register.
In any case where notice to Holders is given by mail, neither the failure to mail
such notice to any particular Holders, nor any defect in any notice so mailed, shall
affect the sufficiency of such notice with respect to all other Holders. Where this
Ordinance provides for notice in any manner, such notice may be waived in writing by
the Holder entitled to receive such notice, either before or after the event with respect
to which such notice is given, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Paying AgentlRegistrar, but such
filing shall not be a condition precedent to the validity of any action taken in reliance
upon such waiver.
SECTION 16: Cancellation. All Bonds surrendered for payment, transfer,
exchange, or replacement, if surrendered to the Paying AgentlRegistrar, shall be
promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying
AgentlRegistrar and, if not already canceled, shall be promptly canceled by the Paying
AgentlRegistrar, The City may at any time deliver to the Paying AgentlRegistrar for
cancellation any Bonds previously certified or registered and delivered which the City
may have acquired in any manner whatsoever, and all Bonds so delivered shall be
promptly canceled by the Paying AgentlRegistrar. All canceled Bonds held by the
Paying AgentlRegistrar shall be destroyed as directed by the City.
SECTION 17: Mutilated. Destroved. Lost. and Stolen Bonds. If (1) any
mutilated Bond is surrendered to the Paying AgentlRegistrar, or the City and the
Paying AgentlRegistrar receive evidence to their satisfaction of the destruction, loss, or
theft of any Bond, and (2) there is delivered to the City and the Paying AgentlRegistrar
such security or indemnity as may be required to save each of them harmless, then, in
the absence of notice to the City or the Paying AgentlRegistrar that such Bond has
been acquired by a bona fide Purchaser, the City shall execute and, upon its request,
the Paying AgentlRegistrar shall register and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost, or stolen Bond, a new Bond of the same Stated
Maturity and interest rate and of like tenor and principal amount, bearing a number
not contemporaneously outstanding.
In case any such mutilated, destroyed, lost, or stolen Bond has become or is
about to become due and payable, the City in its discretion may, instead of issuing a
new Bond, pay such Bond.
Upon the issuance of any new Bond or payment in lieu thereof, under this
Section, the City may require payment by the Holder of a sum sufficient to cover any
tax or other governmental charge imposed in relation thereto and any other expenses
0169795.02
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(including attorney's fees and the fees and expenses of the Paying Agent/Registrar)
connected therewith.
Every new Bond issued pursuant to this Section in lieu of any mutilated,
destroyed, lost, or stolen Bond shall constitute a replacement of the prior obligation of
the City, whether or not the mutilated, destroyed, lost, or stolen Bond shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance
equally and ratably with all other Outstanding Bonds.
The provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement and payment of
mutilated, destroyed, lost, or stolen Bonds.
SECTION 18: Sale of Bonds - Official Statement Aooroval. The Bonds
authorized by this Ordinance are hereby sold by the City to Southwest Securities
Incorporated (the Purchasers) in accordance with the provisions of a Purchase
Contract, dated September 19, 1995, attached hereto as Exhibit C and incorporated
hereby by reference as a part of this Ordinance for all purposes, The Initial Bond shall
be registered in the name of Southwest Securities Incorporated. The Mayor is hereby
authorized and directed to execute the Purchase Contract for and on behalf of the City
and as the act and deed of the City Council, and in regard to the approval and
execution of the Purchase Contract, the City Council hereby finds, determines and
declares that the representations, warranties, and agreements of the City contained in
the Purchase Contract are true and correct in all material respects and shall be honored
by the City. Delivery of the Bonds to the Purchasers shall occur as soon as practicable
after the adoption of this Ordinance, upon payment therefor in accordance with the
terms of the Purchase Contract.
Furthermore, the use of the Preliminary Official Statement by the Purchasers
in connection with the public offering and sale of the Bonds is hereby ratified,
confirmed and approved in all respects. The final Official Statement shall be and is
hereby in all respects approved and the Purchasers are hereby authorized to use and
distribute the final Official Statement, dated September 19, 1995, in the reoffering, sale
and delivery of the Bonds to the public. The Mayor and/or City Secretary are further
authorized and directed to manually execute and deliver for and on behalf of the City
copies of the Official Statement in final form as may be required by the Purchasers, and
such final Official Statement in the form and content manually executed, by said
officials shall be deemed to be approved by the City Council and constitute the Official
Statement authorized for distribution and use by the Purchasers.
SECTION 19: Escrow A!!1"eementAooroval and Execution: Proceeds of Sale.
The Escrow and Trust Agreement dated as of September 19, 1995 (the Agreement) by
and between the City and The Bank of New York, New York, New York (the Escrow
Agent), attached hereto as Exhibit B and incorporated herein by reference as a part of
this Ordinance for all purposes, is hereby approved as to form and content, and the
Agreement in substantially the form and substance attached hereto, together with such
0169795.02
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changes or revisions as may be necessary to accomplish the refunding or benefit the
City, is hereby authorized to be executed by the Mayor and City Secretary and on
behalf of the City and as the act and deed of this City Council; and the Agreement as
executed by said officials shall be deemed approved by the City Council and constitute
the Agreement herein approved.
Furthermore, the Mayor, Mayor Pro Tern, City Secretary, or City Manager, any
one or more of said officials, and the Escrow Agent are hereby authorized and directed
to make the necessary arrangements for the purchase of the Federal Securities
referenced in the Agreement and the delivery thereof to the Escrow Agent on the day
of delivery of the Bonds to the Purchasers for deposit to the credit of the "CITY OF
SCHERTZ GENERAL OBLIGATION REFUNDING BOND ESCROW FUND,
SERIES 1995" (the Escrow Fund), including the execution of any subscription forms
for the purchase and issuance of the "United States Treasury Securities _ State and
Local Government Series" for deposit to the Escrow Fund; all as contemplated and
provided by the provisions of the Act, this Ordinance, and the Agreement.
Immediately following the delivery of the Bonds, the proceeds of sale along with
a cash contribution, if any, from the City (less certain costs of issuance and accrued
interest received from the Purchasers of the Bonds) shall be deposited with the Escrow
Agent for application and disbursement in accordance with the provisions of the
Agreement. The proceeds of sale of the Bonds not so deposited with the Escrow Agent
for the refunding of the Refunded Obligations shall be disbursed for payment of costs
of issuance and deposited in the Bond Fund for the Bonds, all in accordance with
written instructions from the City Manager.
SECTION 20: Redemotion of Refunded Obli!mtions. Certain of the
Refunded Obligations described in Schedule I attached hereto are or will be subject to
redemption prior to their stated maturity at the price of par, premium, if any, and
accrued interest to the date of redemption. The Mayor hereby gives written notice to
the Escrow Agent that these Refunded Obligations have been called for redemption, and
the City Council ordains that such obligations are called for redemption on the dates
shown on Exhibit D hereto, and such direction to redeem the Refunded Obligations on
the date herein specified shall be irrevocable upon the delivery of the Bonds. A copy
of the notices of redemption pertaining to these Refunded Obligations is attached to
this Ordinance as Exhibit D and is incorporated herein by reference for all purposes.
SECTION 21:
Covenants to Maintain Tax-Exemot Status.
A. Definitions. When used in this Section, the following terms have the
following meanings:
"Code" means the Internal Revenue Code of 1986, as amended by all
legislation, if any, effective on or before the Closing Date.
0169795.02
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"Computation Date" has the meaning set forth in Section 1. 148-l(b ) of the
Regulations.
"Gross Proceeds" means any proceeds as defined in Section 1.148-l(b) of
the Regulations, and any replacement proceeds as defined in Section 1.148-l(c)
of the Regulations, of the Bonds.
"Investment" has the meaning set forth in Section 1.148-l(b) of the
Regulations.
"Issue Date" means the date of initial delivery of the Refunded Obligations
to the initial purchasers thereof.
"Nonpurpose Investment" means any investment property, as defined in
section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested
and which is not acquired to carry out the governmental purposes of the Bonds.
"Rebate Amount" has the meaning set forth in Section 1.148-l(b) of the
Regulations,
"Regulations" means any proposed, temporary, or final Income Tax
Regulations issued pursuant to Sections 103 and 141 through 150 of the Code,
and 103 of the Internal Revenue Code of 1954, which are applicable to the
Bonds. Any reference to any specific Regulation shall also mean, as appropriate,
any proposed, temporary or final Income Tax Regulation designed to supplement,
amend or replace the specific Regulation referenced.
"Yield" of
(1) any Investment has the meaning set forth in Section 1.148-5
of the Regulations; and
(2) the Bonds has the meaning set forth in Section 1.148-4 of the
Regulations.
B. Not to Cause Interest to Become Taxable. The City shall not use, permit
the use of, or omit to use Gross Proceeds or any other amounts (or any prop,erty the
acquisition, construction or improvement of which is to be financed directly or
indirectly with Gross Proceeds) in a manner which if made or omitted, respectively,
would cause the interest on any Bond to become includable in the gross income, as
defined in section 61 of the Code, of the owner thereof for federal income tax purposes.
Without limiting the generality of the foregoing, unless and until the City receives a
written opinion of counsel nationally recognized in the field of municipal bond law to
the effect that failure to comply with such covenant will not adversely affect the
exemption from federal income tax of the interest on any Bond, the City shall comply
with each of the specific covenants in this Section.
0169795.02
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C. No Private Use or Private Pavrnents, Except to the extent that it will
cause the Bonds to become "private activity bonds" within the meaning of section 141
of the Code and the Regulations and rulings thereunder, the City shall at all times
prior to the last Stated Maturity of Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Bonds (including property financed with
Gross Proceeds of the Refunded Obligations), and not use or permit the use of
such Gross Proceeds (including all contractual arrangements with terms different
than those applicable to the general public) or any property acquired, constructed
or improved with such Gross Proceeds in any activity carried on by any person
or entity (including the United States or any agency, department and
instrumentality thereof) other than a state or local government, unless such use
is solely as a member of the general public; and
(2) not directly or indirectly impose or accept any charge or other
payment by any person or entity who is treated as using Gross Proceeds of the
Bonds or any property the acquisition, construction or improvement of which is
to be financed or refinanced directly or indirectly with such Gross Proceeds
(including property financed with Gross Proceeds of the Refunded Obligations),
other than taxes of general application within the City or interest earned on
investments acquired with such Gross Proceeds pending application for their
intended purposes.
D. No Private Loan. Except to the extent that it will cause the Bonds to
become "private activity bonds" within the meaning of section 141 of the Code and the
Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds
to make or finance loans to any person or entity other than a state or local government,
For purposes of the foregoing covenant, such Gross Proceeds are considered to be
"loaned" to a person or entity if: (1) property acquired, constructed or improved with
such Gross Proceeds is sold or leased to such person or entity in a transaction which
creates a debt for federal income tax purposes; (2) capacity in or service from such
property is committed to such person or entity under a take-or-pay, output or similar
contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership,
of such Gross Proceeds or any property acquired, constructed or improved with such
Gross Proceeds are otherwise transferred in a transaction which is the economic
equivalent of a loan.
E. Not to Invest at Hie-her Yield. Except to the extent that it will cause the
Bonds to become "arbitrage bonds" within the meaning of section 148 of the Code and
the Regulations and rulings thereunder, the City shall not at any time prior to the final
Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any
Investment, if as a result of such investment the Yield of any Investment acquired with
Gross Proceeds, whether then held or previously disposed of, materially exceeds the
Yield of the Bonds.
0169795.02
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F. Not Federallv Guaranteed. Except to the extent permitted by
section 149(b) of the Code and the Regulations and rulings thereunder, the City shall
not take or omit to take any action which would cause the Bonds to be federally
guaranteed within the meaning of section 149(b) of the Code and the Regulations and
rulings thereunder.
G. Information Reoort. The City shall timely file the information required
by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or
such other form and in such place as the Secretary may prescribe.
H. Rebate of Arbitrae:e Profits. Except to the extent otherwise provided in
section 148(f) of the Code and the Regulations and rulings thereunder or except to the
extent the City complies with Subsection L of this Section:
(l) The City shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and
apart from all other funds (and receipts, expenditures and investments thereof)
and shall retain all records of accounting for at least six years after the day on
which the last Outstanding Bond is discharged. However, to the extent
permitted by law, the City may commingle Gross Proceeds of the Bonds with
other money of the City, provided that the City separately accounts for each
receipt and expenditure of Gross Proceeds and the obligations acquired
therewith.
(2) Not less frequently than each Computation Date, the City shall
calculate the Rebate Amount in accordance with rules set forth in section 148(f)
of the Code and the Regulations and rulings thereunder. The City shall
maintain such calculations with its official transcript of proceedings relating to
the issuance of the Bonds until six years after the final Computation Date.
(3) As additional consideration for the purchase of the Bonds by the
Purchasers and the loan of the money represented thereby and in order to
induce such purchase by measures designed to insure the excludability of the
interest thereon from the gross income of the owners thereof for federal income
tax purposes, the City shall pay to the United States out of the Bond Fund or its
general fund, as permitted by applicable Texas statute, regulation or opinion of
the Attorney General of the State of Texas, the amount that when addlld to the
future value of previous rebate payments made for the Bonds equals (i) in the
case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the
Regulations, one hundred percent (100%) of the Rebate Amount on such date;
and (ii) in the case of any other Computation Date, ninety percent (90%) of the
Rebate Amount on such date. In all cases, the rebate payments shall be made
at the times, in the installments, to the place and in the manner as is or may be
required by section 148(f) of the Code and the Regulations and rulings
thereunder, and shall be accompanied by Form 8038-T or such other forms and
0169795.02
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information as is or may be required by Section 148(f) of the Code and the
Regulations and rulings thereunder.
(4) The City shall exercise reasonable diligence to assure that no errors
are made in the calculations and payments required by paragraphs (2) and (3),
and if an error is made, to discover and promptly correct such error within a
reasonable amount of time thereafter, including payment to the United States
of any additional Rebate Amount owed to it, interest thereon, and any penalty
imposed under Section 1.148-3(h) of the Regulations.
I. Not to Divert ArbitralZe Profits, Except to the extent permitted by
section 148 of the Code and the Regulations and rulings thereunder, the City shall not,
at any time prior to the earlier of the Stated Maturity or final payment of the Bonds,
enter into any transaction that reduces the amount required to be paid to the United
States pursuant to Subsection H of this Section because such transaction results in a
smaller profit or a larger loss than would have resulted if the transaction had been at
arm's length and had the Yield of the Bonds not been relevant to either party.
J. Bonds Not HedlZe Bonds,
(1) At the time the original bonds refunded by the Bonds were issued,
the City reasonably expected to spend at least 85% of the spendable proceeds of
such bonds within three years after such bonds were issued.
(2) Not more than 50% of the proceeds of the original bonds refunded
by the Bonds were invested in Nonpurpose Investments having a substantially
guaranteed Yield for a period of 4 years or more.
K. Qualified Advance Refunding. The Bonds are issued exclusively to refund
the Refunded Obligations, and the Bonds will be issued more than 90 days before the
redemption of the Refunded Obligations. The City represents as follows:
(1) The Bonds are the first advance refunding of any original bonds
issued after 1985 and are the first or second advance refunding of any original
bonds issued before 1986, both within the meaning of section 149(d)(3) of the
Code.
(2) The Refunded Obligations are being called for redemption, and will
be redeemed: (i) in the case of Refunded Obligations issued after 1985, not later
than the earliest date on which such bonds may be redeemed and on which the
City will realize present value debt service savings (determined without regard
to administrative expenses) in connection with the issuance of the Bonds; and
(ii) in the case of Refunded Obligations issued before 1986, not later than the
earliest date on which such issue may be redeemed at par or at a premium of 3
percent or less and on which the City will realize present value debt service
0169795.02
-26-
savings (determined without regard to administrative expenses) in connection
with the issuance of the Bonds.
(3) The initial temporary period under section 148(c) of the Code will
end: (i) with respect to the proceeds of the Bonds not later than 30 days after
the date of issue of such Bonds; and (ii) with respect to proceeds of the Refunded
Obligations on the Closing Date if not ended prior thereto.
(4) On and after the date of issue of the Bonds, no proceeds of the
Refunded Obligations will be invested in Nonpurpose Investments having a Yield
in excess of the Yield on such Refunded Obligations.
(5) The Bonds are being issued for the purposes stated in the preamble
of this Resolution. There is a present value savings associated with the
refunding. In the issuance of the Bonds the City has: (i) neither issued more
bonds, nor issued bonds earlier, and will not allow bonds to remain outstanding
longer, than reasonably necessary to accomplish the governmental purposes for
which the Bonds were issued; (ii) not employed an "abusive arbitrage device"
within the meaning of Section 1.148-10(a) of the Regulations; and Wi) not
employed a "device" to obtain a material financial advantage based on arbitrage,
within the meaning of section 149(d)(4) of the Code, apart from savings
attributable to lower interest rates and reduced debt service payments in early
years.
L. No Rebate Reauired. The City need not comply with the covenants and
duties imposed by the provisions of Subsection H. of this Section if:
(1) The Refunded Obligations were treated as excluded from the
arbitrage rebate requirement of section 148(0(2) and (3) of the Code by virtue
of meeting the small issuer exception contained in section 148(O(4)(D) of the
Code;
(2) The average maturity date of the Bonds is not later than the
average maturity date of the Refunded Obligations; and
(3) The Bonds do not have a Stated Maturity which is later than 30
years after the Issue Date for the Refunded Obligations.
M. Elections. The City hereby directs and authorizes the Mayor, Mayor Pro
Tern, City Secretary, or City Manager, either or any combination of the foregoing, to
make such elections in the Certificate as to Tax Exemption or similar or other
appropriate certificate, form, or document permitted or required pursuant to the
provisions of the Code or the Regulations, as they deem necessary or appropriate in
connection with the Bonds. Such elections shall be deemed to be made on the Closing
Date,
0169795.02
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N, Qualified Tax-Exempt Oblilrations. The City hereby designates the Bonds
as qualified tax-exempt obligations for purposes of section 265(b) of the Code.
SECTION 22: Control and Custodv of Bonds. The Mayor shall be and is
hereby authorized to take and have charge of all necessary orders and records pending
investigation by the Attorney General of the State of Texas and shall take and have
charge and control of the Bonds pending their approval by the Attorney General, the
registration thereof by the Comptroller of Public Accounts and the delivery of the
Bonds to the Purchasers.
Furthermore, the Mayor, Mayor Pro Tern, City Secretary, or City Manager,
either or all, are hereby authorized and directed to furnish and execute such documents
relating to the City and its financial affairs as may be necessary for the issuance of the
Bonds, the approval of the Attorney General and their registration by the Comptroller
of Public Accounts and, together with the City's financial advisors, Bond Counsel, and
the Paying Agent/Registrar, make the necessary arrangements for the delivery of the
Initial Bonds to the Purchasers and the initial exchange thereof for definitive Bonds.
SECTION 23: Satisfaction of Oblie-ation of City, If the City shall payor
cause to be paid, or there shall otherwise be paid to the Holders, the principal of,
premium, if any, and interest on the Bonds, at the times and in the manner stipulated
in this Ordinance, then the pledge of taxes levied under this Ordinance and all
covenants, agreements, and other obligations of the City to the Holders shall thereupon
cease, terminate, and be discharged and satisfied,
Bonds, or any principal amount(s) thereof, shall be deemed to have been paid
within the meaning and with the effect expressed above in this Section when (i) money
sufficient to pay in full such Bonds or the principal amount(s) thereof at Stated
Maturity or to the redemption date therefor, together with all interest due thereon,
shall have been irrevocably deposited with and held in trust by the Paying
Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall
have been irrevocably deposited in trust with the Paying Agent/Registrar, or an
authorized escrow agent, which Government Securities have been certified by an
independent accounting firm to mature as to principal and interest in such amounts
and at such times as will insure the availability, without reinvestment, of sufficient
money, together with any money deposited therewith, if any, to pay when due the
principal of and interest on such Bonds, or the principal amount(s) thereof, at the
Stated Maturity thereof or (if notice of redemption has been duly given or waived or
if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been
made) the redemption date thereof for the Bonds, The City covenants that no deposit
of money or Government Securities will be made under this Section and no use made
of any such deposit which would cause the Bonds to be treated as arbitrage bonds
within the meaning of section 148 of the Code (as defined in Section 21 hereoD.
Any money so deposited with the Paying Agent/Registrar, and all income from
Government Securities held in trust by the Paying Agent/Registrar, or an authorized
0169795.02
-28-
escrow agent, pursuant to this Section which is not required for the payment of the
Bonds, or any principal amount(s) thereof, or interest thereon with respect to which
such money has been so deposited shall be remitted to the City or deposited as directed
by the City, Furthermore, any money held by the Paying Agent/Registrar for the
payment of the principal of and interest on the Bonds and remaining unclaimed for a
period of four (4) years after the Stated Maturity, or applicable redemption date, of the
Bonds such money was deposited and is held in trust to pay shall upon the request of
the City be remitted to the City against a written receipt therefor, subject to the
unclaimed property laws of the State of Texas.
SECTION 24: Printed Opinion. The Purchasers' obligation to accept
delivery of the Bonds is subject to its being furnished a final opinion of Fulbright &
Jaworski L.L.P., Attorneys at Law, approving certain legal matters as to the Bonds,
said opinion to be dated and delivered as of the date of initial delivery and payment for
such Bonds. Printing of a true and correct copy of said opinion on the reverse side of
each of said Bonds, with appropriate certificate pertaining thereto executed by facsimile
signature of the City Secretary of the City is hereby approved and authorized.
SECTION 25: CUSIP Numbers. CUSIP numbers may be printed or typed
on the definitive Bonds. It is expressly provided, however, that the presence or absence
of CUSIP numbers on the definitive Bonds shall be of no significance or effect as
regards the legality thereof, and neither the City nor attorneys approving said Bonds
as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed
on the definitive Bonds.
SECTION 26: Effect of HeadinlZS. The Section headings herein are for
convenience only and shall not affect the construction hereof.
SECTION 27: Ordinance a Contract: Amendments - Outstandimr Bonds.
The City acknowledges that the covenants and obligations of the City herein contained
are a material inducement to the purchase of the Bonds. This Ordinance shall
constitute a contract with the Holders from time to time, shall be binding on the City
and its successors and assigns, and shall not be amended or repealed by the City so
long as any Bond remains Outstanding except as permitted in this Section. The City
may, without the consent of or notice to any Holders, from time to time and at any
time, amend this Ordinance in any manner not detrimental to the interests of the
Holders, including the curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the City may, with the written consent of Holders holding
a majority in aggregate principal amount of the Bonds then Outstanding affected
thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided
that, without the consent of all Holders of Outstanding Bonds, no such amendment,
addition, or rescission shall (1) extend the time or times of payment of the principal of
and interest on the Bonds, reduce the principal amount thereof or the rate of interest
thereon, or in any other way modify the terms of payment of the principal of or interest
on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce
0169795.02
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the aggregate principal amount of Bonds required for consent to any such amendment,
addition, or rescission.
SECTION 28: Benefits of Ordinance. Nothing in this Ordinance, expressed
or implied, is intended or shall be construed to confer upon any person other than the
City, Bond Counsel, Paying AgentlRegistrar, and the Holders, any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance or any provision hereof,
this Ordinance and all its provisions being intended to be and being for the sole and
exclusive benefit of the City, Bond Counsel, the Paying AgentlRegistrar, and the
Holders.
SECTION 29: Inconsistent Provisions. All ordinances and resolutions, or
parts thereof, which are in conflict or inconsistent with any provision of this Ordinance
are hereby repealed to the extent of such conflict, and the provisions of this Ordinance
shall be and remain controlling as to the matters ordained herein.
SECTION 30: Construction of Terms. If appropriate in the context of this
Ordinance, words of the singular number shall be considered to include the plural,
words of the plural number shall be considered to include the singular, and words of
the masculine, feminine or neuter gender shall be considered to include the other
genders.
SECTION 31: Governillll" Law. This Ordinance shall be construed and
enforced in accordance with the laws of the State of Texas and the United States of
America.
SECTION 32: Severability. If any prOVlSlon of this Ordinance or the
application thereof to any person or circumstance shall be held to be invalid, the
remainder of this Ordinance and the application of such provision to other persons and
circumstances shall nevertheless be valid, and the City Council hereby declares that this
Ordinance would have been enacted without such invalid provision,
SECTION 33: Incorporation of Preamble Recitals. The recitals contained
in the preamble hereof are hereby found to be true, and such recitals are hereby made
a part of this Ordinance for all purposes and are adopted as a part of the judgment and
findings of the City Council.
SECTION 34: Authorization of Pavillll" A!!:ent/Relristrar Agreement. The
City Council of the City hereby finds and determines that it is in the best interest of
the City to authorize the execution of a Paying Agent/Registrar Agreement concerning
the payment, exchange, and transferability of the Bonds. A copy of the Paying
Agent/Registrar Agreement is attached hereto, in substantially final form, as Exhibit
A and is incorporated by reference to the provisions of this Ordinance.
SECTION 35: Public Meeting. It is officially found, determined, and
declared that the meeting at which this Ordinance is adopted was open to the public
0169795.02
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and public notice of the time, place, and subject matter of the public business to be
considered at such meeting, including this Ordinance, was given, all as required by
Chapter 551, as amended, Texas Government Code.
SECTION 36: Unavailability of Authorized Publication. If, because of the
temporary or permanent suspension of any newspaper, journal, or other publication,
or, for any reason, publication of notice cannot be made meeting any requirements
herein established, any notice required to be published by the provisions of this
Ordinance shall be given in such other manner and at such time or times as in the
judgment of the City or of the Paying Agent/Registrar shall most effectively
approximate such required publication and the giving of such notice in such manner
shall for all purposes of this Ordinance be deemed to be in compliance with the
requirements for publication thereof.
SECTION 37: No Recourse Alrainst Citv. No recourse shall be had for the
payment of principal of, premium, if any, or interest on any Bond or for any claim
based thereon or on this Ordinance against any official of the City or any person
executing any Bond.
SECTION 38: Exemntion from Comnliance with Certain of the Provisions
of Securities and Exchanlre Commission Rule 15c2-12. The offering of the Bonds is
exempt from the continuing disclosure requirements of SEC Rule 15c2-12(b)(5)
pursuant to paragraph (g) of the Rule, because (1) the offering commenced before
January 1, 1996, (2) following issuance of the Bonds, the City will not be committed by
contract or other arrangement to support payment of more than $10,000,000 in
aggregate amount of outstanding municipal securities, and (3) no other person is so
committed to support payment of the Bonds. Accordingly, the City will not contract
to provide continuing information to investors after it issues the Bonds. For a
description of statutory requirements to keep, audit, and make available certain records,
see "Continuing Availability of Information" in the Official Statement.
SECTION 39: Emerlrencv Adontion. The City Council hereby determines
that an emergency exists requiring immediate action, and this Ordinance is hereby
passed as an emergency measure to be effective immediately upon its passage, and the
enactment of this Ordinance as an emergency measure in accordance with the
provisions of Section 4.09(e) of the City's Home Rule Charter will contribute to the
preservation of the public peace, health, or safety,
[The remainder of this page intentionally left blank]
0169795.02
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PASSED AND ADOPTED on the 19th day of September, 1995.
ATTEST:
~J /J/~ L,,-u/JR-)
City Secretary
(CITY SEAL)
Schedule I - Refunded Obligations
Exhibit A - Paying AgentlRegistrar Agreement
Exhibit B - Escrow and Trust Agreement
Exhibit C - Bond Purchase Agreement
Exhibit D - Notices of Redemption
0169795.02
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Mayor
~~
Schedule I
Refunded Obligations
1. City of Schertz, Texas General Obligation Bonds, Series 1975, dated March 1,
1975, in the original principal amount of $235,000, stated to mature on
September 1, 1996 through September 1,2001, in the aggregate principal amount
of $130,000;
2. City of Schertz, Texas Combination Tax and Junior Lien Revenue Certificates
of Obligation, Series 1981, dated February 1, 1981, in the original principal
amount of $150,000, stated to mature on February 1, 1997 and February 1, 1998,
in the aggregate principal amount of $40,000;
3. City of Schertz, Texas Combination Tax and Junior Lien Waterworks and Sewer
System Revenue Certificates of Obligation, Series 1983, dated May 1, 1983, in
the original principal amount of $1,250,000, stated to mature on May 1, 1998
through May 1, 2001, in the aggregate principal amount of $585,000;
4. City of Schertz, Texas General Obligation Bonds, Series 1987, dated March 1,
1987, in the original principal amount of $460,000, stated to mature on March
1, 2001 and March 1, 2002, in the aggregate principal amount of $110,000;
5. City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates
of Obligation, Series 1990, dated February 1, 1990, in the original principal
amount of $850,000, stated to mature on February 1, 2003 through February 1,
2005, in the aggregate principal amount of $270,000;
6, City of Schertz, Texas, Utility System Revenue Bonds, Series 1975, dated March
1, 1975, in the original principal amount of $325,000, stated to mature on
September 1, 1996 through September 1,2005, in the aggregate principal amount
of $205,000; and
7. City of Schertz, Texas, Utility System Revenue Bonds, Series 1981, dated
February 1, 1981, in the original principal amount of $475,000, stated to mature
on September 1, 1996 through September 1, 2000, in the aggregate principal
amount of $185,000,
01697",02 I-I
EXHIBIT A
Paying Agent/Registrar Agreement
See Tab No.
0169795.02
A-l
~" -~-..'" --,. " " ..,. .,
EXHIBIT B
Escrow and Trust Agreement
See Tab No.
0169795.02
B-1
EXHIBIT C
Bond Purchase Agreement
See Tab No.
~
0169795.02
C-l
EXHIBIT D
Notices of Redemption
See Tab No.
0169795.02
D-l
PUBLISHER'S AFFlDA\lIT
. ~t~11
V ~~1 (pL1'
.Ii!J;J. 90~C
ft~J,~4
THE STATE OF TEXAS,
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared L. A. REYNOLDS
known
to me, who, being by me duly sworn, on his oath deposes and says that he is the Publisher of The Seguin
Gazette-Enterprise, a newspaper published in said county; that a copy of the within and foregoing
AD was published in said newspaper C7\ times before the return day named therein, such
publications being on the following dates:
~k1Y)b-{Ar a-J-,Iqct\-
~\p-kmbt,v Jr, l({(C t,LlLd, {o- ~'.et~a-
"'" a"...."ape< _ ofwh;ch. he<eto - C~. .
c::=-~~
Sworn to and subscribed before me, this ,;28t4-day ot~-k1Y)bt{r A.D., 19 C:{~
"?~\'l
A~ "'A ",~~\ MARGARET l. CLARKSON
I.:, ~:-f7 "~ NotaryPt''t):, Slale 01 Tey.a5
~ .\, ~ / } MjCOmmlSSOOIlExpIfllSJan.14, i998
\"',"',.._.,../..."'r
~'\1:J~~"'"
~fJAOA~-j- .? ~~~J
Notary Public, Guadalupe County, Texas
:"'~", :'," ','"
, < - -
'0 ., -><..~ ~ ,.~_~ : ;;..:::.~~ - .t" -:- ..,: '::?-_::.:..-;:;~~
ORDINANCE 95-8-27
AN ORDINANCE BY THE
CITY COIJNCr:. OF THE
C'TY OF "SCHERTZ
TEXAS GENERAL OBLI:
GATION REFUNDING
BONDS, SER'ES 1995"
LEVY'NG AN ANNUAL AD
VALOREM TAX, WITH'N
THE L1M'TATIONS PRE-
SCR'BING THE FORM
TERMS, COND'TIONS'
AND RESOLVING OTHER
MATTERS 'NCIDENT
AND RELATED TO THE
'SSUANCE, SALE, AND
DELIVERY OF THE
BONDS. 'NCLUD'NG THE
APPROVAL AND DISTR'.
BUTION OF AN OFF'C'AL
STATEMENT PERTAIN.
'NG THERETO; AUTHOR-
'ZING THE EXECUTION
OF A PAYING AGENT!
REG'STRAR AGREE,
MENT, A B 0 PUR-
CHASE A EEMENT
AND AI'! ES OW AND
TRUST A EEMENT'
AND DEC ING Ar-.i
EMERGENC
Passed, App
Adople Ihe
Seplem 1
Norma A'
City Seere
ORDINANCE 95-8-27
AN ORDINANCE BY THE
CITY COUNCil OF THE
C'TY OF "SCHERTZ.
TEXAS GENERAL OBLI-
GATION REFUNDING
BONDS. SERIES 1995",
LEVYING AN ANNUAL AD
VALOREM TAX, WITHIN
THE LIMITATIONS PRE-
SCRIBING THE FORM.
TERMS, CONDITIONS,
AND RESOLVING OTHER
MATTERS INCIDENT
AND RELATED TO THE
ISSUANCE, SALE. AND
DELIVERY OF THE
BONDS, INCLUDING THE
APPROVAL AND OISTR'-
BUTION OF AN OFFICIAL
STATEMENT PERTAIN-
ING THERETO; AUTHOR,
IZING THE EXECUTION
OF A PAYING AGENTI
REGISTRAR AGREE-
MENT, A BOND PUR-
CHASE AGREEMENT.
AND AN ESCROW AND
TRUST AGREEMENT;
AND DECLARING AN
EMERGENCY.
Passed. Approved and
Adopted the 19th day at
September 1995.
Nanna Althouse,
City SecretalY
."
"
--..'-".......